Under Virginia's agency framework, which of the following best describes the fiduciary duty of 'accounting' as it applies to a licensee holding client funds?
Correct Answer
D) The duty to promptly deposit, safeguard, and account for all funds entrusted by the client
The fiduciary duty of accounting in Virginia agency law requires the licensee to promptly and properly handle all money and property entrusted to them by a client, maintain accurate records, and account for those funds at any time upon request. This is directly tied to Virginia's trust account requirements under 18 VAC 135-20-180, which mandate proper handling of earnest money deposits and other client funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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